PUBLIC DEBT

Evening Post, Volume CXXVI, Issue 116, 12 November 1938, Page 15

PUBLIC DEBT

MATURING LOAN

SOME EARLY ISSUES

Referring to the overseas loan of £17,173,191 which falls due on January L 1940, the Minister of Finance (the Hon. W. Nash) said yesterday that, with the exception of an odd amount of £1000 due on April 4, 1939, the whole amount consists of 3£ per cent. Consolidated Stock due on January 1, 1940. This Consolidated Stock was issued from time to time from 1889 to 1913. The issue originally arose from the policy embodied in the Consolidated Stock Act. 1877. of converting numerous small ioans with various maturity dates and rates of interest into large blocks of long-dated stock.

"An interesting feature of the loan., said the Minister, "was its association with the origin of our Public Debt. The commencement, of. our Public Debt was a loan of £500,000 raised in 185G with a guarantee of. the British Government to redeem a lien on the lands of the colony then held by the New Zealand Company. The last £50,000 of this loan was converted into 3i per cent. 1940 stock, and formed part of the issue under consideration. The debt also represented £1,276,340 of the Maori War loans raised in 1860 and 1863.

The bulk of the present issue, however, arose from Public Works loans, including conversion of portions of the loans raised from 1870 to 1910, aggregating £10,358,595, together with new issues for the same purpose totalling £779,100. Conversion of old land for settlement issues accounted for £1,017,432 and of State Advances issues. £1,032,364. Other interesting points were that the maturing loan represented portion of the debt incurred in 1895 under the Bank of New Zealand and Banking Act and part of the naval defence loan of 1909. Old provincial liabilities were represented to the extent of £666.908.

Mr. Nash added that there were four different issues of Consolidated Stock, £29,591.000 of 4 per cent. 1929 stock dealt with at that time, the issue of 3>J per cent., 1940. now under consideration. £10.884,628 of 4 per cent., 1943-63, stock, and £9.659.980 of 3 per cent, stock maturing in 1945.